Housing and Development Board before refinancing with a bank loan of S$260,000 with a tenure of 25 years and a floating rate of 1.3 per cent with a three-month compounded Singapore Overnight Rate Average .
“I think we'll be able to ride the wave for some time still, but we'll keep monitoring the interest rates. Even if we were to refinance, we have to consider if the refinancing fees of about S$1,500 to S$2,000 are worth the monthly savings,” Mdm Siti said.Homeowners who spoke to TODAY have started to feel the pressure of rising home loan interest rates, since banks in Singapore raised their fixed home loan rates up to 4.5 per cent, the highest in almost two decades.
OCBC’s Financial Wellness Index 2022 released on Tuesday shows that 40 per cent of working adults in Singapore surveyed said that they were experiencing some form of mortgage stress. The study polled 2,182 people between the ages of 21 and 65.This difficulty has varying levels: From being able to make repayments but with some difficulty, to being forced to sell off their property or downgrade to a smaller house.
However, she added, her children who are in their mid-20s and already working would have to step in if the monthly repayments start to increase. According to Mr Bryan Chan, client adviser at Providend, refinancing is an option that homeowners with bank loans can consider. Although some homeowners may feel worried, MAS’ Financial Stability Review 2022 that was released on Friday shows that the credit quality of housing loans has strengthened further over the past year even as mortgage relief schemes expired in September 2021.
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If only analysts are helping them pay for their mortgages 😂